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Immigration Conflicts

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  • Junko Doi

    (Faculty of Economics, Kansai University, Japan)

  • Laixun Zhao

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

Abstract

Almost all existing literature assumes immigrants immediately assimilate in the receiving country. In contrast, the present paper considers the case of non-immidiate assimilation, and analyzes immigration conflicts in an overlapping generations dynamic system. We examine three types of conflicts that arise when immigrants come in: skill conflicts that affect the capital rental and also cause the wage gap to change between skilled and unskilled workers; intergenerational conflicts that lead to different impacts on the young and old generations; and distributional conflicts that affect each generation's life time utility unequally. The degree of substitution between natives and immigrants in production plays a key role. We also analyze the welfare composition in detail generation by generation, and provide policy recommendation for each case.

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File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2012-29.pdf
File Function: Revised version, 2012
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Bibliographic Info

Paper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number DP2012-29.

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Length: 33 pages
Date of creation: Oct 2012
Date of revision: Dec 2012
Handle: RePEc:kob:dpaper:dp2012-29

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Keywords: Immigration; Overlapping generations; Inequality;

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  1. Slobodan Djajić, 2003. "Assimilation of immigrants: Implications for human capital accumulation of the second generation," Journal of Population Economics, Springer, vol. 16(4), pages 831-845, November.
  2. Michael Ben-Gad, 2006. "Capital-Skill Complementarity and the Immigration Surplus," DEGIT Conference Papers c011_047, DEGIT, Dynamics, Economic Growth, and International Trade.
  3. Edward P. Lazear, 1995. "Culture and Language," NBER Working Papers 5249, National Bureau of Economic Research, Inc.
  4. Bauer, Thomas K. & Lofstrom, Magnus & Zimmermann, Klaus F., 2000. "Immigration Policy, Assimilation of Immigrants and Natives' Sentiments towards Immigrants: Evidence from 12 OECD-Countries," IZA Discussion Papers 187, Institute for the Study of Labor (IZA).
  5. Felbermayr, Gabriel & Kohler, Wilhelm K., 2007. "Immigration and native welfare," Munich Reprints in Economics 20608, University of Munich, Department of Economics.
  6. Fan, C. Simon & Stark, Oded, 2007. "A social proximity explanation of the reluctance to assimilate," MPRA Paper 30940, University Library of Munich, Germany.
  7. Harrie A. A Verbon & Lex Meijdam, 2004. "Too Many Migrants, Too Few Services: A Model of Decision-making on Immigration and Integration with Cultural Distance," CESifo Working Paper Series 1268, CESifo Group Munich.
  8. Stark, Oded & Wang, Yong, 2002. "Inducing human capital formation: migration as a substitute for subsidies," Journal of Public Economics, Elsevier, vol. 86(1), pages 29-46, October.
  9. Edward P. Lazear, 2004. "Balanced Skills and Entrepreneurship," American Economic Review, American Economic Association, vol. 94(2), pages 208-211, May.
  10. Hatton, Timothy J. & Williamson, Jeffrey G, 2006. "A Dual Policy Paradox: Why Have Trade and Immigration Policies Always Differed in Labour-Scarce Economies?," CEPR Discussion Papers 5443, C.E.P.R. Discussion Papers.
  11. Scheve, Kenneth F. & Slaughter, Matthew J., 2001. "What determines individual trade-policy preferences?," Journal of International Economics, Elsevier, vol. 54(2), pages 267-292, August.
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